Business

What to look for in in-house tax return software

Article Abstract:

A wide variety of software packages designed to facilitate the preparation of tax returns in-house are now available. Generally, these tax return software carry basic features such as master tax reference guides available on-line, tailor-made instruction letters for clients, and help screens also available on-line. The use of such tax preparation software would require a system as basic as an 8088 processor with 640K memory or a more advanced 386 processor. Sharing client files among several users would require a local area network. These tax preparation packages come with vendor-supplied customer support services and the ability to create general schedules and forms as required by the law. Other basic features that software buyers must look for in a tax return package are discussed, as well as other additional features.

IRS can't include barred income as accounting change

Article Abstract:

The Tax Court ruled in 'Saline Sewer Co,' TCM 1992-236 that adjusting a firm's accounting method to recharacterize fees derived capital contributions to customer connection fees cannot be considered a change in accounting methods if the issue of appropriate timing for the inclusion of these fees is not pertinent to the case. The IRS, therefore, was denied permission by the Court to make any adjustment in Saline Sewer's accounting method so that the fees is declared by the company in closed years as nontaxable contribution could be reflected as taxable income.

IRS modernization will mean more electronic filing and fewer audits

Article Abstract:

The IRS is modernizing its computer systems to simplify the input of tax information. The modernization also aims to provide on-line tax information to IRS employees and should allow IRS offices to be inter-connected nationwide through a sophisticated telecommunications network. The Tax System Modernization, as it is called, should: permit 'balance due' returns to be filed electronically, result in the establishment of a single on-line tax information data base, allow the scanning of paper returns, and introduce new audit and examination computer systems.